Why Melco Crown’s rolling chip volume decreased in 4Q14

Rolling chip volume

Rolling chip volume refers to the amount of non-negotiable chips wagered and lost by the rolling chip market segment. It’s largely represented by VIP players. The rolling chip win rate refers to the rolling chip table games’ win as a percentage of rolling chip volume.

City of Dreams

Rolling chip volume at Melco Crown Entertainment’s (MPEL) City of Dreams’ property was $18 billion for 4Q14—compared to $25.6 billion in 4Q13. The rolling chip win rate was 2.8% in 4Q14—compared to 3% in 4Q13. The expected rolling chip win rate is 2.7%–3%. The above chart shows that since 2011, Melco Crown Entertainment’s City of Dreams’ rolling chip win rate has been 2.5%–3.2%.

Altira Macau

The rolling chip volume at Altira Macau was $8.1 billion in 4Q14—compared to $10.6 billion in 4Q13. The rolling chip win rate was 2.6% in 4Q14—compared to 3% in 4Q13. The expected rolling chip win rate is 2.7%–3%.

Macau’s VIP, or rolling chip play, segment has been negatively impacted by the ongoing anti-corruption campaign in China. The anti-corruption campaign was also negative for other casino players operating in the Macau region—including Las Vegas Sands (LVS), MGM Resorts (MGM), and Wynn Resorts (WYNN).